The Law Offices of Frank R. Cruz reminds investors of the upcoming December 6, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of Opendoor Technologies Inc. (“Opendoor” or the “Company”) (NASDAQ: OPEN) investors who purchased: (a) securities between December 21, 2020 and September 16, 2022, inclusive (the “Class Period”); and/or (b) common stock pursuant and/or traceable to the Offering Documents issued in connection with the business combination between the Company and Opendoor Labs Inc. completed on or about December 18, 2020.
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On September 19, 2022, Bloomberg reported that Opendoor appeared to have lost money on 42% of its transactions in August 2022, further stating that data was even worse in key markets, where Opendoor lost money on up to 76% of sales. The findings evidenced the failure of Opendoor’s algorithm to accurately adjust to changing market conditions.
On this news, Opendoor’s stock price fell $0.50, or 12.3%, over the next two consecutive trading days, to close at $3.56 per share on September 20, 2022, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Offering Documents and Defendants failed to disclose to investors that: (1) the algorithm used by the Company to make offers for homes could not accurately adjust to changing house prices across different market conditions and economic cycles; (2) as a result, the Company was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations; (3) accordingly, Defendants overstated the purported benefits and competitive advantages of the algorithm; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Opendoor securities during the Class Period, you may move the Court no later than December 6, 2022 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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